Metevante Spin-Off Costs Weigh on M&I

MILWAUKEE – Marshall & Ilsley Corp. reported strong first quarter financial yesterday, weigh down only by $1.3 million in costs related to the planned spin-off of its Metavante unit. M&I reported a 25% surge in first quarter net income to $216.8 million, up from $173.1 million for the first quarter last year. Metavante has agreed to spin-off its back-office service provider Metavante to shareholders, then sell a 25% stake in Metavante to private equity fund Warburg Pincus for $625 million. Metavante represents a conglomeration of credit union service providers including the NYCE EFT network, Advanced Financial Solutions, NuEdge Systems, Response Data and Kirchman Corp., and is the owner of one of four competing electronic image/check networks, known as Endpoint Exchange.